What practices are prohibited ECOA?
This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.
What are the two exceptions when a creditor may ask the applicants marital status?
Unmarried may be defined to include divorced, widowed, or never married, but the application must not be structured in such a way as to encourage the applicant to distinguish among these. A creditor may ask if an applicant is receiving alimony, child support, or separate maintenance payments.
What are 6 things credit card companies must disclose?
Total of payments, Payment schedule, Prepayment/late payment penalties, If applicable to the transaction: (1) Total sales cost, (2) Demand feature, (3) Security interest, (4) Insurance, (5) Required deposit, and (6) Reference to contract.
What are prohibited basis for declining to extend credit to a loan applicant?
Rules for Extensions of Credit 12 CFR 1002.7 Individual accounts. A creditor shall not refuse to grant an individual account to a creditworthy applicant on the basis of sex, marital status, or any other prohibited basis. that the creditor considers in evaluating creditworthiness.
What are ECOA rules?
The Equal Credit Opportunity Act (ECOA), enacted in 1974, and its implementing rules (known as Regulation B) prohibit creditors from discriminating on the basis of race, color, religion, national origin, sex, marital status, age (provided that the applicant has the capacity to contract), because all or part of an
What are the two exceptions when a creditor may ask the applicants marital status?
Unmarried may be defined to include divorced, widowed, or never married, but the application must not be structured in such a way as to encourage the applicant to distinguish among these. A creditor may ask if an applicant is receiving alimony, child support, or separate maintenance payments.
What are some common ECOA issues?
Race. Color. Religion. National origin. Sex / gender. Marital status. Age (unless a person is not of legal age to enter into a contract) Status as a public assistance recipient.
What are two questions you should avoid asking based on ECOA?
Any questions about your race, ethnicity and gender cannot be used as a reason to approve or deny your credit application. Creditors have to provide equal information to all borrowers throughout the entire transaction.
